Nigeria SEC Appoints Committee to Build Framework for Crypto and Blockchain

The development was reported by the local news agency, Business Insider SSA. The framework will be designed for the Nigeria Capital Market.

The FinTech Roadmap Working Group is headed by Ade Bajomo, with other members from different sectors. This includes the country's regulatory agencies, tech experts, and the private sector.

As per the report, the announced committee is tasked to come up with a framework for blockchain and cryptocurrency. The structure is expected to facilitate innovation and the regulation of the crypto industry in the country.

The FinTech Roadmap Working Group is responsible for comparing global practices on regulatory anonymization. Also, the framework will debut with regards to financial stability, financial market integrity, and investor protection.

Moving forward, the committee is expected to categorize cryptocurrencies, if they are securities, a commodity, or a currency. Based on the guidelines from the committee, the country's SEC will know how to regulate them in Nigeria.

Also, the committee will suggest the best model adoption of blockchain and cryptocurrency in the Nigeria Capital Market. Meanwhile, the framework is said to be completed before the end of November 2019.

The SEC, however, added that it would work with other regulatory agencies to license regimes for several FinTech businesses in Nigeria.

Wake for the Nigerian fintech 

The announced development today is considered a significant step by the Nigerian government to grow its fin-tech capacity. It also improves the financial inclusion in the country and protection of investor's funds.

The call for the cryptocurrency framework is coming at a good time, where fintech opportunities in Nigeria are vast. Over 30 million Nigerians do not own any bank accounts, and the Central Bank of Nigeria (CBN) hopes to reduce the population to at least 20%.